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Road Transport Industry: Squeezed margins and high diesel prices are putting the spotlight on the road transport industry. Cash-flows and balance sheets look strong, but the outlook for 2006 will be increasingly challenging.
Inflation is the key theme shaping the business cycle and necessitating a period of somber growth in the NZ economy. Vehicle demand – as a pro-cyclical durable good – will wane as a consequence. Slower growth in the NZ economy will foster a weaker dollar, which will place upwards pressure on import prices in 2006.
The agritech sector represents businesses that provide technology and services to agriculture. Its value to the New Zealand economy comes through three channels: - the agritech sector generates direct revenue and export earnings in its own right;
- its products and services facilitate ‘best practice’ farm management techniques;
- the sector allows additional value to be extracted from farm products by meeting consumer preferences.
The seafood industry is approaching a cyclical low as lingering New Zealand dollar strength, high fuel prices, quota restrictions and high shipping rates filter through to returns. But the foundations are there for a relatively solid outlook.
The Auckland economy continues to perform well. The region is entering its seventh year of an expansion that has seen average annual growth of 3.3 percent. Activity within the region increased by 3.8 percent over 2004.
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